Sustainable Business Growth Strategy

Developing a bespoke cyber strategy

Challenge

Our client, a global insurer, was looking to build and review its cyber strategy, while also developing a roadmap to success. It wanted to understand the overall market, the key players, and cyber risks in the next 5-10 years.

We were expected to identify opportunities and liaise with the client to prioritise initiatives to ensure maximum buy-in. The higher priority opportunities also needed to be grouped and aligned to strategic pillars.

Approach

Initially, we hosted a workshop to discuss the client's involvement and review previous outputs to understand what it wanted to achieve in its cyber strategy.

We then conducted a series of market development workshops to understand the trajectory of the cyber insurance market. This included desktop research on core product line competitors to determine peer performance in cyber and any recent activity.

We discussed our findings with the client, using these insights to develop an opportunity long-list for growth. This included indicative investment levels required for implementing the identified opportunities.

Finally, we grouped the opportunities according to strategic pillars and created a draft roadmap for action. This was tested with key client team members to incorporate any additional points and ensure maximum stakeholder buy-in.

Benefits

Our team provided the client with an informed overview of the key risks across the cyber industry, as well as mapping its competitors by capital deployed and business size.

We identified three main pillars:

• becoming experts in cyber
• customer proximity
• strengthening collaboration across the ecosystem, such as prioritising and developing relationships with current / future brokers

Once the opportunities were prioritised, we provided the operational magnitude of change for the key themes within each pillar.

We also created high-level roadmaps for both 12 months and five years, which received positive feedback.

Global Insurer EMEA Growth Strategy

Challenge

Our client is a global insurer offering protection solutions to both commercial and retail segments.

It had defined its strategic priorities, but was looking for support to validate its initial hypotheses around key growth opportunities, and identify additional opportunities for growth.

The review focused on three specific markets: UK, Czech Republic and the UAE.

We were engaged to help develop a cohesive strategic narrative for the client within each of these three markets, and support the identification and evaluation of growth opportunities.

Approach

Our first step was to hold meetings with key stakeholder groups to understand their priorities and their shared strategic ambition.

We then conducted external research to identify macro trends affecting the market, and how these were influencing growth opportunities across different products, customer segments, and channels. This included interviews with external market experts to gather more targeted information about the competitive landscape.

Leveraging these trends and insights, we drew up a long-list of potential opportunities, on top of the initiatives already underway

We supported the client in evaluating these opportunities and ensuring they aligned with the strategic priorities articulated at the beginning of the exercise.

Finally, we developed a roadmap for action, including the capabilities required to successfully deliver the strategy.

Benefits

Our client benefitted from a clear articulation of strategic ambition by market, with a view of the core growth platforms that would support them in achieving these aims. This included alignment across broad stakeholder groups, which had previously been siloed.

We also provided them with a roadmap that outlined the key actions required to progress these opportunities and manage them alongside ongoing initiatives.

Pharmecutial Business Unit Spin-Off

Challenge

After a strategic review, our client, a multinational pharmaceutical company, wanted to spin-off its US$7bn eyecare business into a separate company.

This required operational separation from the RemainCo and the build-up of new functions at the SpinCo.

At the same time, the client was also looking for support in designing the target operating model (TOM) for the SpinCo (including elements such as employee transfers, creation of new functions, transitional services, etc.)

We led the operational separation support for both ParentCo and SpinCo during the review, design, planning and execution phases. This included ‘Soft-spin' and Day 1 readiness support globally.

As part of this two-year engagement, our team became intimately familiar with the operations of one of the world’s leading eyecare companies.

Approach

We assigned a global, multi-disciplinary team to this project, consisting of functional and subject matter experts.

Through rigorous desktop research and interviews, we assessed the counterparty’s negotiation position and strategic rationale to prepare our client for the initial approach.

We advised on the TOM across different functions, including commercial and R&D, manufacturing/supply chain and overhead functions (such as IT, finance, HR, procurement, and real estate.)

We also established a central SpinCo program management office (PMO) to support transaction and operational workstreams and ensure seamless coordination across the project teams.

Benefits

With our support, the client achieved a smooth spin-off in spite of overwhelming complexity (US$28bn transaction volume).

The successful scoping and establishment of new functions meant the SpinCo was ready to function as an independent leading eyecare business as soon as the transaction was complete.

Oil and Gas E-Mobility Strategy

Challenge

One of the world's leading integrated oil and gas companies owned and operated a large portfolio of forecourt assets across several continents.

Recognising the huge changes that are likely to have a transformative impact on the mobility ecosystem over the next decade and more, the client was concerned about the risks of stranded assets and declining downstream revenues, while also wanting to identify additional growth opportunities.

Working closely with the client, our team identified the following strategic support areas:

• quantifying the value pool
• understanding competition
• identifying partners
• understanding if, and how, assets could be re- purposed

Approach

The client believed it had a strong model for understanding the value pools across the electric vehicle (EV) value chain. But we quickly recognised it wasn’t detailed enough to truly understand the implications

Our EV value chain experts brought significant insight on the technological trends and implications, the regulatory environment, and the different competitor archetypes in the emerging mobility ecosystem.

We ran workshops with the client to discuss our long-list of potential participation options and accessible value pools. Leveraging our insights on client ambition, capabilities and the legacy business, we narrowed the list down to two priority options.

These were then considered from a roll-out perspective across the key geographies.

We also undertook a screening exercise to identify potential partners who could support the client's participation.

Benefits

Thanks to our input and support, the client was able to consider their strategic options across the mobility ecosystem, based on a deeper understanding of their participation options in the EV value chain.

It subsequently made a major acquisition in the EV charging sector, with KPMG also assisting on the transaction. The client has continued developing its EV proposition to become one of the leading players in the charging sector.

Global Automotive OEM E-Mobility Strategy

Challenge

We were engaged by a global automotive OEM to help develop its European electric vehicle (EV) energy strategy, paving the way for it to enter adjacent energy and charging markets.

With global automotive production increasingly focusing on EVs, our client recognised the urgent need to provide access to an ecosystem of services beyond the vehicle itself to support vehicle sales, offset declining profit margins and maintain a strong customer experience.

We provided a combination of expert market knowledge across specific geographies and sectors, such as energy and charging, as well as strategic guidance to help the client identify priority segments and the potential value/cost involved, plus a practical execution plan.

The engagement was completed over a rapid 10-week period with a short intermission for executive engagement, working in constant close contact with the client’s team.

Approach

The client had previously commissioned work in the EV segment, but had yet to build this into a cohesive overall proposition, or to source executive approval.

We worked closely with its EV strategy team to help define a unique strategy across four main phases.

• Assessing and evaluating the range of value chain segments across energy and charging that our client could potentially seek to enter, prioritising areas of attractive return and strategic importance.
• Developing and refining a series of energy business models and propositions that the business should develop to satisfy future customer needs.
• Quantitatively assessing the potential value pools and investment required with selected business models, as well as the overall financial impact / return.
• Building out short, mid and long-term implementation plans, with prioritised entry modes and action plans.

Benefits

We combined our expertise in the automotive, EV, energy and technology markets to provide insight on the impacts of entering new energy segments, while rapidly upskilling the client’s European strategy team and senior management.

Using the dynamic revenue and profit pool model we created, the client was able to assess potential returns across all EU+ markets. This allowed the impact of business model combinations and sensitivities to be tested.

We were able to outline a range of ‘max’ and ‘min’ participation scenarios for the client, along with a recommended approach that conserved capital while maintaining future optionality. We also helped it to secure executive approval for the strategy and build this out into an action plan that is being deployed in national EU markets

The project received strong positive feedback from senior management, as shown by our continued retention to assist in local market implementation and capability acquisitions.

Growing a consumer products strategy

Challenge

Our client is a large (£30bn+ revenue) global consumer products organisation.

Under a new CEO and after multiple changes to the executive leadership team, the organisation had developed a new strategy. But delivering the strategy required significant changes to the existing operating model.

Approach

We partnered with the client, working in joint client-KPMG teams to cover the full value chain, including sales and marketing, supply chain and enabling functions across the globe.

Working back from the new strategy, we performed an initial outside-in opportunity assessment to identify potential changes and associated value.

We worked with leadership to prioritise and sequence changes, enabling detailed operating model design and implementation across the organisation.

Benefits

We helped the client transform its business and implement its new strategy. Key benefits included:

• Aligning executive leadership team on new operating model, clarifying roles and accountabilities across the organisation.
• Embedding new organisation and skills required to drive increased consumer focus via a new global customer organisation.
• Redesigning the approach and associated structure to next generation products.
• Simplifying the organisation by introducing consistent market archetypes to drive efficiency, transparency and enable matrix working as the organisation moved from a federated to a globally connected organisation.
• Developing detailed designs, including process, organisation, technology and KPIs, across the organisation.
• Setting up implementation approach and supported delivery of the changes, including associated change management.
• Delivering approximately £150m of efficiency savings per year.